A Retailer Sells All Goods on a Rate of Mark-Up

question 60

Multiple Choice

A retailer sells all goods on a rate of mark-up on cost of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?

• A) 25%
• B) 15%
• C) 30%
• D) 17.5%
• E) 20%

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Definitions:

Punitive Damages

Financial compensation awarded in a lawsuit that exceeds simple restitution and is intended to punish the defendant for egregious conduct and deter similar future behavior.

Medical Expenses

Costs incurred from medical care, treatment, or procedures, potentially including hospitalization, medication, and professional fees.

Nominal Damages

A small amount of money awarded to a plaintiff in a lawsuit when a legal wrong has been suffered but no substantial harm was done.

Tort

A legal wrong that causes harm or loss, leading to civil legal liability.